Economics of small speaker manufacturers


Looking at the drivers, cabling and woodwork that some small scale factory direct speaker manufacturers offer (Tyler Acoustic for example), I am curious to know what the selling price would be if the same speakers were sold by say Dynaudio, JM Lab or B&W via their multi-echelon distribution channel, accounting for shareholder return, marketing expenses, profit of all distributor-retailers involved, etc?
When Tyler sells a pair of Linbrook System 2 for $4,000 shipping included ( as stated "one 8" Seas magnesium woofer, one 7" Seas magnesium midrange and the Seas millennium tweeter. Hovlands, Alpha cores and Sidewinders are used in the critical signal paths. DH Labs wire comes standard" + real veneer"), how much would this sell for if it were a bigger "commercial" brand?

Thanks for educating me.
kanuk

Showing 1 response by kthomas

Interesting thread. I'd be curious to read an analyst's view on the industry and its trends. Reading Duke and Lou's open and honest posts, it sounds like a consumer is definitely benefitting, cost-wise, from purchasing direct from the manufacturer, which certainly feels like it makes sense. The biggest downside is, as identified, that you can't, or can't easily, demo the speakers. But that is already a downside for most models for most of us - unless one has a dealer close by, hearing before buying is difficult at best.

The value proposition of buying from a local dealer is disappearing in many, if not most, cases and with it goes any reason to pay the prices of a dealer-network distribution model. The direct-from-manufacturer model probably doesn't scale to huge heights, but high-end audio gear will likely always be a niche market, so it probably doesn't have to scale that way.